Canada's Immigration Shift: IRCC Plan Updates 2025-2026
On June 20, 2025, Immigration, Refugees and Citizenship Canada (IRCC) unveiled its 2025–2026 Departmental Plan, marking a significant strategic shift towards a more managed and sustainable immigration system. This plan prioritizes aligning newcomer levels with Canada's capacity, particularly concerning housing and social services.
Rebalancing the Numbers: Permanent and Temporary Residents
The most notable change is a strategic reduction in permanent resident targets. For 2025, this means 105,000 fewer admissions compared to previous projections, with further decreases planned for 2026 and 2027. This aims to ensure better integration and long-term prosperity. A key focus is on transitioning temporary residents already in Canada to permanent status, with over 40% of 2025's new permanent residents expected to come from this group. Economic immigration remains a priority, especially in sectors like healthcare and trades, while commitments to family reunification and humanitarian efforts are upheld. Notably, Francophone immigration targets outside Quebec will increase year-over-year, reaching 10% by 2027.
For the first time, the plan introduces explicit targets for temporary residents, aiming to reduce their share of Canada's total population to 5% by the end of 2026. This will lead to a projected reduction of over 445,000 temporary residents in both 2025 and 2026. Key measures to achieve this include:
Maintaining and further reducing the international student cap.
Tightening eligibility for Post-Graduation Work Permits (PGWPP).
Reforming the Temporary Foreign Worker Program (TFWP), including a 10% cap on low-wage hires and a drastic reduction in LMIA-based work permits (from 184,000 in 2023 to 80,000-84,000).
Limiting work permits for spouses of temporary residents.
Modernizing the System
The plan also outlines initiatives to enhance efficiency and responsiveness:
The Economic Mobility Pathways Pilot (EMPP) for skilled refugees will become a permanent program by the end of 2025.
New foreign labour streams and work permits will be created for the agriculture and fish processing sectors.
A new, unified online account for all IRCC clients will be rolled out through 2025–2026.
IRCC is piloting "GeoMatch," an AI tool to help Express Entry candidates find optimal settlement locations.
Digital passport modernization and expanded online renewal services are also underway.
National Impact
These strategic adjustments are projected to have significant socio-economic benefits, including:
Reducing the national housing supply gap by approximately 670,000 units by the end of 2027.
Contributing to robust GDP growth and accelerating GDP per capita growth.
Improving housing affordability and lowering the unemployment rate.
This comprehensive plan signals a thoughtful rebalance in Canada's immigration strategy, aiming for sustainable growth that benefits both newcomers and existing communities.
